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HOCHBAHN Annual Report 2015

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We link up Hamburg |

We link up Hamburg | Management | Management Report | Annual Financial Statements | Further Information In early 2016 the HOCHBAHN began the preliminary and design planning as well as the approval planning for the extension of the U4 to Horner Geest and the first construction phase of the new U5 in early 2016. After the HOCHBAHN abandoned its plans for the U4 extension to Kleiner Grasbrook following the negative outcome of the referendum on Hamburg’s application to host the Olympic Games, activities here are being concentrated on the section of track to Horner Geest. Regionalisation funds of € 15 million to finance the first steps of this have been raised via a document published by the Senate and Parliament. Construction may begin from 2019 onwards. Regionalisation funds of € 40 million for the construction of the first section of the U5 have been raised via a document published by the Senate and Parliament. Building work on this section can commence in 2021. Feasibility studies for the further construction phases of the U5, which envisage extending the line from City Nord via the Inner City to Siemersplatz, began in early 2016. In this context, in-depth examination of the different variants as regards routing, station installations and construction processes needs to be carried out in respect of those sections which failed to produce a clearly preferred variant in the concept study. The HOCHBAHN is financing these feasibility studies with € 2 million from regionalisation funds raised via a document published by the Senate and Parliament. The further routing of the line to connect Lurup and Osdorfer Born is currently the subject of an intensive study by the HVV to determine the best variant. As soon as the specialist authorities and the political bodies have been able to examine the results of this variant study, a decision can be made on how to proceed and the further planning steps can be initiated without delay. Direct award of contract for bus services On 19 August 2014, the Senate Commission in charge of public institutions invited the HOCHBAHN and the Verkehrsbetriebe Hamburg -Holstein GmbH (VHH) in a document to create the preconditions for the direct award of contracts for bus services. The transport companies are encouraged in this way to develop, among other goals, an optimised route network and bus cycles across company lines and to define benchmarking instruments involving other suitable transport operators. Extensive studies were carried out regarding the optimisation of the route network across company lines together with VHH and with the support of Signon (formerly HamburgConsult). The findings of the study are to be reviewed to see how they can be implemented in operational practice in 2016. Two suitable benchmarking partners have been found, in the shape of transport companies from Berlin (BVG) and Hanover (üstra). PricewaterhouseCoopers Aktiengesellschaft Wirtschaftsprüfungsgesellschaft has meanwhile, as lead company, carried out studies for various functional areas using comparable data from 2012 and 2014, with good results. 34

Annual Report 2015 The BWVI (Hamburg Department for Economic Affairs, Transport and Innovation) already announced the direct allocation of transport contracts in the case of the VHH in the EU Official Journal at the end of 2015. This publication in advance of calls for tender should be seen as a declaration of intent for the direct award of contracts for defined transport operations. Subject to a statutory minimum period of one year, the direct award of the contract to the VHH can be made at the earliest at the end of 2016. The advance publication for the HOCHBAHN is yet to be made since currently not all the statutory conditions have been fulfilled. According to the legal framework, the direct award of a contract is only permissible if and when the company is not involved either directly or through its subsidiaries outside the home market. This means that the HOCHBAHN must find a solution for BeNEX before the contract can be directly awarded. The HOCHBAHN is under no time pressure in taking the steps necessary for meeting the requirements for the direct award while safeguarding their interests in the best way possible. The HOCHBAHN has currently been entrusted by the City of Hamburg with providing bus services until the end of 2019. The switchh project The switchh project was launched in a two-year pilot phase on 31 May 2013. With switchh, the Hamburger Hochbahn AG links public transport with service providers for complementary mobility options such as car sharing on an online mobility platform at so-called switchh points. The aim of switchh is to persuade people that they do not need their own car, so as ultimately to make a contribution to improving not only traffic conditions but also living quality and environmental conditions in the Hansestadt. The two-year pilot phase gave way to a so-called transition phase which began with a participation procedure in summer of 2015 to encourage further cooperation partners on board. The aim of this is to launch the new range of services on offer from switchh onto the market in the second half of 2016. The mainstays of the new services are: • Opening up switchh for all HVV users, i.e. it will no longer be restricted to HVV subscription customers • A larger and more diverse choice of vehicles so that customers can cover more application scenarios where a car is needed without having a car of their own • Creating a diversified range of switchh products which will appeal to those interested in car sharing as well as those who use the car sharing service occasionally or regularly In this way we want to achieve a significantly better utilisation rate for the potential which already exists. It involves creating the preconditions for bringing only occasional HVV users, who up to now were largely left outside the personalised service, into the process in order to create a better relationship of loyalty and build on that. On top of this the financing purely from user revenues (the proceeds of selling products) will be supplemented by income from partners (service fees for marketing and the use of switchh points). 35

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